Punjab National Bank (PNB) stands as India's first Swadeshi Bank, operating as a Banking and Financial service bank owned by the Government of India, with its headquarters in New Delhi, India. It is the second-largest Public Sector Bank (PSU) after SBI. Established in 1894, PNB is one of the oldest and largest public sector banks in India, founded by a group of seven wealthy businessmen in Lahore, who aimed to cater to the banking needs of the trading community.
The bank's journey through history reflects India's own evolution as a nation. The bank became the first Indian bank to start the practice of issuing bank notes in 1906. In the wake of the Partition in 1947, PNB was forced to relocate its headquarters to New Delhi. Partition forced PNB to close 92 offices in West Pakistan, one-third of its total number of branches, which held 40% of the total deposits. On March 31, 1947, even before Partition, PNB had decided to leave Lahore and transfer its registered office to India; it received permission from the Lahore High Court on June 20, 1947, at which time it established a new head office at Under Hill Road, Civil Lines in New Delhi.
In 1960, it became a scheduled bank under the Reserve Bank of India Act, 1934, which enabled it to provide a wider range of services and access to financial markets. The bank played a crucial role in the Indian economy, particularly in financing agriculture and small-scale industries.
The bank is among the top 3 Public Sector Banks in India by business size, with a strong presence in North and Central India. In terms of branch network, as of March 2023, Punjab National Bank operates over 10,000 branches and more than 13,000 ATMs across India and overseas. The bank's international presence includes branches in countries such as the UK, Canada, and the UAE.
The bank's international expansion has been strategic and measured. PNB established PNBIL – Punjab National Bank (International) – in the UK, with two offices, one in London, and one in Southall. Since then it has opened more branches, this time in Leicester, Birmingham, Ilford, Wembley, and Wolverhampton. In January 2010, PNB established a subsidiary in Bhutan. PNB owns 51% of Druk PNB Bank, which has branches in Thimphu, Phuntsholing, and Wangdue.
As of recent data, PNB's market capitalization stands at ₹1,27,399 Crore, with revenue of ₹1,24,010 Crore and profit of ₹18,553 Crore. The bank has demonstrated strong financial recovery and growth trajectory in recent quarters.
For Q4 FY25, Punjab National Bank reported a consolidated net profit of ₹4,642.9 Crore for the quarter that ended on March 31, 2025 (Q4 FY25). This marks approximately 50% rise year-on-year from ₹3,100.9 Crore. The public sector undertaking's total income rose by 13.1% to ₹37,299 Crore from ₹32,976.5 Crore in Q4 FY24.
Key financial highlights for FY25 include:
* Net profit: ₹4,642.9 Crore (Q4 FY25), up 50% YoY.
* Total income: ₹37,299 Crore (Q4 FY25), up 13.1% YoY.
* Dividend declared: ₹2.90 per equity share for FY 2024-25.
For the third quarter of FY25, EPS stood at ₹4.18, up from ₹2.21 in 3Q 2024.
The bank has made significant strides in improving its asset quality. The gross non-performing asset (GNPA) ratio of the bank came down to 3.95% as of March 2025, from 5.73% in the year-ago period. Meanwhile, the net non-performing asset (NNPA) came down to 0.4% as compared to 0.73% in Q4 FY24.
The bank's net interest income (NII) increased by 15.7% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 2.9% in FY24 as against 2.8% in FY23.
In August 2019, Finance Minister Nirmala Sitharaman announced that the Oriental Bank of Commerce and United Bank of India would be merged with Punjab National Bank. The proposed merger would make Punjab National Bank the second-largest public sector bank in the country with assets of ₹17.95 lakh Crore and 11,437 branches. On April 1, 2020, the merger came into effect. Post-merger, all customers of the other two merging banks are now treated as the customers of PNB.
Recent efforts have been directed towards improving digital banking services, with PNB introducing various digital initiatives to enhance customer experience. The bank has also focused on expanding its retail loan portfolio, which now constitutes a significant portion of its lending business.
The bank offers comprehensive banking services, including loans, credit cards, savings accounts, fixed deposits, and insurance to meet customer needs.
The bank's savings deposits increased to ₹4,98,429 Crore, registering a Y-o-Y growth of 3.8%, while the total term deposit witnessed a growth of 21.5% on Y-o-Y basis to ₹9,93,080 Crore.
The bank's deposits during FY24 stood at ₹13,792.3 billion as compared to ₹12,903.5 billion in FY23, thereby witnessing an increase of 6.9%. Advances for the year stood at ₹9,417.6 billion as compared to ₹8,374.6 billion during FY23, a rise of 12.5%.
The bank maintains a promoter holding of 70.1%, reflecting strong government ownership. PNB's equity shares are listed on the Bombay Stock Exchange and the National Stock Exchange of India. It is a constituent of the Nifty 50 index at the NSE.
With a dedicated workforce of over 1,00,000 employees, Punjab National Bank continues to strive for a leading position in the Indian banking sector. The bank's journey from a small regional institution to one of India's largest public sector banks demonstrates its resilience and adaptability in the evolving financial landscape.
